MANILA, Philippines - Standard & Poor's raised its growth forecast for the Philippine economy this year to 7.1%, after a strong first half.
In its report "After The Financial Crisis, Is Asia-Pacific An Export-Lighter, Credit-Heavier Model?", S&P said Philippines' GDP will hit 7.1% this year, an upward revision of its 6.9% forecast in July.
In the first half of the year, the Philippine economy grew by 7.6%. The government is targeting 6 to 7% growth this year.
"Although Asia-Pacific's pace of expansion has declined over the past few years or so, the region's growth continues to be the highest in the world after the global financial crisis," S&P said.
S&P also noted that Asia-Pacific is unlikely to return to pre-crisis growth levels.
"With ultra-low interest rates generated by major central banks, lending has surged in some Asian economies, providing--at least for now--an offset to weaker external demand. Add to this mix slower growth in the two Asian giants, China and India, and we believe the region is unlikely to return to pre-crisis growth even if the advanced economies--particularly the United States--recover smartly," it said.
Asia-Pacific's growth is seen at 5.2% this year.
On Wednesday, the Asian Development Bank said it raised its growth forecast for the Philippines this year, as it cut projections for most Asian economies.
source: www.abs-cbnnews.com
